Hyundai Motor Co reported its highest-ever quarterly profit and revenue for the three months ending in June. The strong performance was driven by favorable exchange rates and high sales of sport utility vehicles (SUVs) in the US. Despite the record profit, Hyundai warned of a challenging outlook due to increased price competition as inflation and high interest rates affect consumers.
Hyundai Motor, along with its affiliate Kia Corp, is the world’s third-largest automaker by sales. For the April-June period, Hyundai reported a net profit of 4 trillion won ($2.89 billion), up from 3.2 trillion won a year earlier. This exceeded analysts’ average forecast of 3.4 trillion won.
The company’s net profit for this quarter was its highest since Q2 2022. In contrast, Japanese competitor Nissan Motor saw its first-quarter profit nearly wiped out due to heavy discounting in the US, and it lowered its annual outlook.
Hyundai outperformed rivals, including Tesla and Ford, by increasing sales of premium SUVs and hybrid vehicles in the US. This helped offset weak sales in its domestic market, South Korea, where sales dropped 10% in the second quarter due to inflation and a weak economy.
In the US, Hyundai’s vehicle sales rose by 2.2% in the second quarter, with high-margin SUVs making up about 80% of the total and hybrid vehicle sales increasing by 42% compared to the previous year. Analysts noted that a favorable exchange rate also boosted Hyundai’s profit, with the won dropping 4.3% against the dollar over the past year.
